The National Stock Exchange (NSE) on January 10, 2025, issued a corrigendum to Reversal Trade Cancellation Mechanism (RTCM) in Equity Derivatives Segment.
The following has been stated namely: -
• It corrects the criteria for shortlisting contracts by changing the term "less than" to "less than or equal to" in specific points. Consequently, the criteria now include:
o Contracts with Monthly Expiry:
a. All monthly expiry futures and options contracts (stocks and indices) with expiry dates more than 40 calendar days from the next trading day.
b. For monthly stock futures and options contracts with expiry dates less than or equal to 40 calendar days to expiry – all strikes 10% away from the underlying price.
c. For monthly index futures and options contracts with expiry dates less than or equal to 40 calendar days to expiry – all strikes 5% away from the underlying price.
o Contracts with Weekly Expiry:
a. All weekly expiry index futures and options contracts with expiry dates more than 15 calendar days from the next trading day.
b. For index contracts with weekly expiry dates less than or equal to 15 calendar days to expiry – all strikes 5% away from the underlying price.
• All other provisions from the previous circulars (NSE/SURV/65645 dated December 17, 2024, and NSE/SURV/65736 dated December 23, 2024) remain unchanged.
[Notification no. - NSE/SURV/66070
